International Capital Conference

2011 Highlights and 2012 Preview

The third annual International Capital Conference (ICC), which took place in Paris on November 22-23 2011, was a resounding success, paving the way for even greater accomplishments in 2012.
Cavendish Group, in partnership with the Boao Forum for Asia and the Federation of Indian Chambers of Commerce and Industry, the Chinese M&A Association and the Chamber of Commerce and Industry of the Russian Federation assembled an audience of more than 400 European and BRIC and other Asian leaders at the Ministry of Economy, Finance and Industry in Paris. Senior policymakers, business leaders and academics were all in attendance, cementing the ICC’s position as the Premier Global Business Event connecting the EU, BRIC and US – the developed and fast developing worlds.

Welcome to the Top Table
President of France Nicholas Sarkozy addressed the opening of the conference at a reception at the Elysee Palace. “We welcome China to the world’s top table,” he said during a detailed and enthusiastic speech that confirmed Europe’s commitment to working with Chinese officials and businesses to improve cooperation.
Once the conference proper got underway, delegates were treated to a series of candid discussions featuring leading CEOs and Policy makers from China, Europe and beyond. They debated the central and pressing questions facing both established western countries and the growth economies of China, India, Russia Asia and South America.
Topics ranging from banking regulation, corporate strategy, M&A and private equity were all covered. The conference addressed the challenges facing business in an increasingly fragmented and volatile global economy, including the following:

• The pressing need to resolve the eurozone crisis
• Increasing China’s investment in Europe
• Encouraging the growth of new financial centres to complement the rise of emerging economies
• Developing a robust and joined up response to the challenges of financial regulation post-crisis
• Encouraging increased flows of capital to drive investment in emerging economies
• Overcoming the cultural barriers that can impede successful cross-border investment

Joining senior government officials and regulators from across the world were the lawyers, financiers, bankers and advisers that will shape the future landscape of the global economy. The ICC demonstrated that once again that it is the world’s most important business conference bringing together leaders from the most established and most high growth nations.
The ICC received excellent support from its commercial sponsors who included KPMG, Allen & Overy, Jersey Finance, Kreab Gavin Anderson and IE Business School.
Headline Contributions
Unique content is what drives the smartest thinkers to attend the ICC. The 2011 ICC attracted more than 50 members of the press and generated more than 100 stories in the world’s media.
Here is a snapshot of some of the commentaries:
• Francoise Baroin, the French Minister of Economy, Finance and Industry reminded delegates that both the French and European economies have the right mix of strengths that will help them survive the current crisis.
• Zhang Yansheng, Director of Institute for International Economics Research, National Development and Reform Commission, China said: “The growth of China’s economy will be increasingly reflected beyond its shores: outbound FDI has been growing by 40% over the last 5 years, while inward FDI only grew 9%, so if that continues then China will be making a big contribution to recovery through increasing domestic demand as well as through continuing its support for Chinese companies investing in Europe and elsewhere.”
• Dai Xianglong, Chairman, National Council For Social Security Fund explained China’s support of the US’s policy of decreasing its debt and boosting exports, as well as the attempts to support the stability of the Euro. “We have always been supportive of that,” he said. “The eurozone debt crisis is not a currency problem – it’s an issue of low growth, high unemployment and welfare along with the budgetary deficit to deal with.”
• Dr Subhir Gokarn, Deputy Governor of the Reserve Bank Of India, was concerned for the future of banking regulation. He highlighted the difficulty of assessing the effects of any new rules precisely. “You’ll only know in hindsight if they work. But some regulatory advancements do come as a response to the key risks and that is good. And the new framework does address the points of vulnerability in the system while recognising the importance of links between institutions. But the key question is: who will protect against systemic failures and individual failures?”
• Dr Rajiv Kumar, Secretary General, FICCI, was clear about his solution to the current volatility affecting the global economy. “We desperately need an anchor in these turbulent times when even the sovereign guarantee is no longer taken as the ultimate guarantee by the market. So we need an anchor, and that will provided by a core group of economies that work together on the basis of a commitment to stabilise the global economy.
• Sergei Katyrin, President of the Chamber Of Commerce And Industry Of Russian Federation told delegates that Russia was ready to play its part in the recovery. “We are opening up to the world,” he said. We need to build a new, innovative economy because this will help us ride out the ‘perfect storm’ currently affecting global markets. Globalisation means that we have to face the same challenges as everyone else in Russia and we are trying to find a way out.
• Charles Liu, Founder & Managing Partner, HAO Capital told the audience that he “wouldn’t touch western banks with a ten foot pole”. Citing more write-offs from sovereign and mortgage debt and the speculative positions still held by several leading investment banks, Liu told the conference he was sure there were more potential significant losses to come.
• China's reliance on nuclear power cannot be reduced as the country needs to diversify its energy requirements, Zhang Guobao, advisory board chairman of the National Energy Administration, told delegates. “No matter what circumstances, it is inevitable to include nuclear power as a significant component of China's effort to resolve energy problems.”
• Philippe Varin, Member of Comité France Chine and CEO, PSA Peugeot Citroen, diagnosed the current global financial crisis as “grave”, and told delegates the carmaker expected a tough twelve months. Varin estimated that PSA’s Spain will be down 50%, UK down 20%, France 5% on pre-crisis market levels. In his view, the answer is to globalise and look elsewhere for growth. “In 2009, we sold one third of our cars outside Europe and we want to get to 50% by 2015,” he said.
• Peter Mandelson pulled no punches, telling the conference that the near term prospects for the UK and Europe are not positive. “Back in 2008-09 we could have accelerated our way out recession, and we were able to do that by borrowing and spending. It was the right thing to do. But now, it’s not so simple.”
• Ambassador Gérard Errera, Special Adviser to the Blackstone Group chaired the Nuclear Energy after Fukushima session. His overview stressed the need for countries to work together in the wake of Japan’s recent disaster. “The future of nuclear energy is linked to an increase in International cooperation – whether that be reactors, fuel or whatever,” he said. “More cooperation will be needed, but the question before us now is how best to develop that cooperation, especially between Europe and developing countries in Asia that wish to develop their nuclear capabilities.
• Luc Oursel, CEO of AREVA, insisted that the future of nuclear industry would involve every country in the world. “Today, we have 400 Gw of nuclear plants across the world, and we estimate that will reach 600 Gw by 2030, a 50% increase. When we look at where it will happen, it will be across the world, and of course in China and India, but Europe still has the desire to start or restart nuclear projects. So the idea that nuclear’s future lies entirely in Asia is a little flawed.”
Connections Created
Outside the conference hall, speakers and delegates were able to mix freely and talk about the issues raised during the panel discussions. A series of receptions allowed those attending to take time out from the conference to establish business links with counterparts from across the world.
As a result, investors and observers from China and India and other fast growing economies gained a deeper understanding of the demands – and opportunities – of investing in Europe, while those from the more developed economies were able to glean priceless insight into the trends ands risks currently shaping emerging markets.
The 2012 ICC: November, Beijing
In November 2012 the ICC will cement its position as the Premier Global Business Event and will be held in the “Bird’s Nest” stadium in Beijing. Following shortly after the October 18th Party Congress, the ICC will be the unique moment for global business leaders and policy makers from Asia, EU and US to come to Beijing to meet counterparts.
The ICC has also launched the International Capital Club for its founding supporters and partners. Please visit www.internationalcapitalconference.com , and register to join the International Capital Club.